Uploaded by John Smith

ACCT-451-0-61 Winter2018

Financial Reporting and Analysis
Accounting 451-61, Winter 2018
Mark Finn
Global Hub 4451
(847) 467-1635
Mon & Thurs: 3:30-5pm (Evanston)
Course description and objectives:
The course will allow students to acquire the tools and general perspectives necessary to become
reasonably sophisticated users of financial statements. This skillset is considered essential for
careers in finance. However, it is also of paramount importance to many general managers,
entrepreneurs, and board members, whose career trajectories inevitably require them to make
decisions involving financial reporting and accounting-related governance.
The pedagogy will employ a combination of lectures, case discussions and analyses, numerical
exercises, and independent readings. The cases used in the course will provide an opportunity to
integrate the abstract tools learned and apply them in a practical context.
Course materials:
The recommended (but not required) textbook for the course is “Financial Reporting and
Analysis”, by Revsine, Collins, Johnson, Mittelstaedt and Soffer (6th Edition, McGraw-Hill
Irwin, 2015) (referred to as “RCJMS” throughout the syllabus.) The cases are collected in a
course packet available through Study.net. The syllabus and other materials, including markedup lecture slides, handouts, assignments, and suggested solutions where available, will be posted
on Canvas. The schedule shown on Canvas will serve as the master document, and I expect you
to check it frequently for announcements, updates and revisions. All materials on the course
website are for your personal use only and may not be distributed without my prior permission.
Course requirements:
Eight Canvas-based weekly assignments (30% of the class grade).
Online at-home midterm (30% of the class grade)
In-class final examination; open-notes, open-book (40% of the class grade)
The early final exam option will be allowed for this class. This program is administered by
Kellogg Students Affairs. Students wishing to take their early final exams the weekend before the
ACCT 451-61 Syllabus – Winter 2018
official exam week may do so through that office.
Students may work on the weekly assignments in teams of up to five students. However, every
student will be responsible for submitting his or her own answers to the assignment questions in
Canvas. A large portion of the two exams will be based on the assignments.
Being a part of a well-functioning assignment team can be critical to your success in the class.
Our weekly assignments will be long and hard, but will provide you with the tools that will be
essential to your mastery of the course material. Initially, I will allow students to take the
initiative in forming their own assignment teams. However, if problems arise – for instance, a
particular student not being able to find a team – I reserve the right to intervene in the team
formation process in whatever manner that I believe advances the educational interests of the
class as a whole.
Kellogg Honor Code:
The student experience at Kellogg is unique because, among other reasons, students trust that
their classmates will behave with honesty, integrity, and respect in all academic, professional,
and social matters. Adherence to the Kellogg Honor Code plays a key role in engendering this
trust. The Honor Code requires that a student not seek an unfair advantage over other students,
for example, by not giving or receiving unauthorized aid during completion of academic
requirements, by truthfully representing fact and self at all times, and by respecting the property
and personal rights of all members of the Kellogg community. Students’ willingness to abide by
this Code allows faculty and students to interact with a minimum of rules, regulations, and
bureaucracy, which in turn allows us to focus on creating an engaging and challenging academic
environment. In particular, you may not use any material from previous offerings or concurrent
sections of the class in preparing material to be graded. For example, you may not look at
answers to graded assignments from previous quarters, or ask students from other sections of the
class in the current quarter to share solutions to graded assignments, cases, or exams. If you have
questions about what falls within the bounds of honorable behavior, please ask.
Laptops, Cell Phones, etc.
Kellogg’s Code of Classroom Etiquette governs appropriate classroom behavior for the course.
In particular, I expect students to be punctual arriving for class, to notify me in advance if you
are going to miss a class, and not to engage in disruptive eating during class. Laptops can be
used during class time only for course-related activities, such as note-taking or working out
numerical problems. The use of laptops is only allowed for students sitting in the last row. Please
switch off cell phones or put on silent mode, and put them away before the start of class.
ACCT 451-61 Syllabus – Winter 2018
Course Outline, Accounting 451, Section 61
Jan 8 & 11
Accounting for Income Taxes
Assignment 1 –Short assignment on taxes
Jan 17 & 18
Accounting for Income Taxes (continued)
Pro Forma Financial Statements for Alternative
Accounting Methods
Jan 22 & 25
Assignment 2 –Comprehensive assignment on taxes
and pro formas
Revenue recognition and receivables
Assignment 3 – Revenue recognition
Jan 29 & Feb 1
Fair value accounting; IFRS overview
Assignment 4 – Fair value accounting
Feb 5 & 8
Intangible assets
Feb 9 thru 15
Timed online at-home midterm
Feb 12 & 15
Convertible Instruments; EPS and Multiples
Stock-based compensation
Feb 19 & 22
Assignment 5 – Convertibles; EPS; Multiples
ACCT 451-61 Syllabus – Winter 2018
Feb 26 & Mar 1
Assignment 6 – Stock-based compensation
Retirement plans
Mar 5 & 8
Assignment 7 – Leases
Overview of accounting reforms and the future of
financial reporting;
Mar 12 & 15
Wrap-up and final exam review
Assignment 8 – Retirement plans
March 16-23
Final Exam (the early exam option is allowed for this
class and may be arranged through Student Affairs)
Note: Items appearing in bold are to be submitted at the beginning of class.
ACCT 451-61 Syllabus – Winter 2018